Hear the latest weekly insights into the property market via podcast by Rich Harvey, CEO and founder of Propertybuyer.
Mon 12 Feb '24
with Rich Harvey Decoding Sydney’s North Shore Market – Outlook and Opportunities.
Sat 27 Jan '24
with Rich Harvey Home Buying in the Eastern Suburbs – A personal journey
Sun 7 Jan '24
with Rich Harvey Economic and Property Market Outlook 2024
Thu 21 Dec '23
with Rich Harvey Sydney’s Luxury Property Market Insights
Mon 11 Dec '23
with Rich Harvey Economic Recession or Recovery - What’s next?
Wed 22 Nov '23
with Rich Harvey Using Data & AI for Better Property Decisions
Buyers’ agents help anyone who is seeking specialist advice on a property purchase, whether they are professional executives, first time home buyers, experienced investors, commercial buyers and developers.
The key difference between a buyers’ agent (or advocate) and a traditional selling agent is whom they represent. A buyers’ agent works exclusively for the buyer, whereas the selling agent works for the vendor (seller). A buyers’ advocate is paid for their service as either a fixed fee or as a percentage of the purchase price. A buyers’ advocate does not sell real estate. By law, an agent in Australia cannot act for (and accept a commission) from both parties in the transaction.
Be careful in dealing with a buyers' advocate (or agent) who is situated within a traditional sales office.
They are not independent and would have an inherent conflict of interest or bias in recommending their own local stock of listings; for example, a buyers’ agent in Sydney who works within a sales agency in a certain suburb will only show properties in that area and be unlikely to get access to other sales agents’ off-market listings (as the other agents are reluctant to deal with them). Exclusive property buyers’ advocates will search all of the suitable areas in Sydney’s real estate market and not have a vested interest in any specific property or selling agency.
A good quality Sydney buyers’ agent or buyers' advocate should undertake five key steps in delivering their services.
Searching the internet, calling agents, arranging inspections and viewing properties every weekend can continue for months on end, which is exhausting and can make it difficult to maintain momentum. Professional buyers’ agents will have an extensive and established network of real estate agents to draw on to produce a qualified list of properties to suit your preferences.
The average home buyer or investor typically takes 6 to 12 months to get to know the local real estate market, find properties and eventually secure one. By this time, it’s possible that a rising market may have seen prices increase by over 10%. Even with all the latest apps and online tools, it still takes time to vet the vast array of options available and work out what is worth inspecting. With a qualified buyers' agent on your side, finding that perfect property in Sydney (or Melbourne or Brisbane) can take as little as 30 days.
A skilled real estate buyers' agent will be able to save you a lot of money! As they are in the business of buying properties on a daily basis they become very proficient at negotiating. For example, a Sydney buyers' advocate will protect you from making an emotional purchase in an area that looks lovely but doesn’t have as much promise as a suburb a few streets away. As they don’t have a vested interest in the property, they can negotiate objectively on your behalf.
Negotiating is an art – especially when dealing with real estate agents. Selling agents have lots of tricks and tactics to use on unsuspecting buyers.
An expert buyers' agent will be able to level the playing field and give you the upper hand in negotiations.
Buyers’ advocates know the local real estate market values intimately, so they will be able to provide you with the confidence that you are paying the right price. When it comes to bidding at auction, the buyers’ agent knows which tactics are successful and which are not, and is able to prevent you from getting caught up in the heat of the moment.
Let’s face it – dealing with real estate agents is not top of everyone’s priority list. Research has shown that selling agents rank poorly on the trust scale of professionals (doctors at the top car salesman and real estate agents on the bottom). Using an experienced and
Underquoting is a common practice that causes many buyers incredible frustration. A skilled property buyers' agent in Sydney, for example, will be able to determine in a heartbeat if the price quoted is realistic and if you have a chance of securing the property. Having a buyers' advocate on your side means you get the truth about the market, the property and what needs to be done to buy it successfully (without the selling agent knowing you are emotionally attached).
Discover silent listings: We can uncover the 40% of properties sold on the quiet in Australia.
Did you know that our property buyers' advocates in Sydney can uncover many “off-market” opportunities for you to view?
With a wide network of professional real estate agents, the buyers' advocate can get access to new listings before they hit the open market. Some vendors prefer to sell in the quiet and avoid the hassle of open inspections and to avoid marketing fees. Sales agents like dealing with buyers' agents as they present a qualified buyer, with finance approved and ready to buy.
Off market opportunities abound in the prestige market with a very high percentage sold in this manner. Privacy and discretion are the main reasons for luxury property vendors choosing a silent listing method of sale. Buyers' agents are usually the first to be notified of these opportunities.
Whether you are buying a home or investment property, selecting the right suburb is paramount for your success. Buyers' agents that specialise in investment property have access to the latest research and statistics to help you pinpoint the best areas for long-term capital growth. There is a clear science behind property investing and sticking to the fundamental drivers of population growth, employment opportunities and infrastructure growth means you can optimise your investment decision-making.
The investment buyers’ agent will provide research on the areas recommended then commence shortlisting specific properties that fit the investment criteria.
This removes the uncertainty and guesswork that are inevitable if you try purchasing real estate for investment purposes on your own, and provides you with the opportunity to maximise your returns.
A buyers’ agent is paid for their professional service as either a fixed fee or as a percentage of the purchase price. Buyers’ advocates typically offer three main services: full search, appraise and negotiate and auction bidding. The fees may range from 1.5% to 3% of the purchase price or the flat fee equivalent.
The majority of buyers agent set fees around three main services:
Most professional buyers’ agents charge an engagement fee as a form of retainer. This is simply compensation for the amount of time and effort the buyer’s agent will spend searching for properties and undertaking research. It also ensures commitment from the buyers’ advocate and the buyer. This ranges from $3000 up to 50% of the total fee payable.
The total buyers’ agent fee will depend on your specific requirements, search parameters, budget and degree of difficulty. It’s important to understand you are engaging a professional property consultant to act impartially as your representative in searching and negotiating for your next home or investment property.
It’s worth noting again that you must beware of selling agents masquerading as “Buyers’ agents” within a sales agency and only presenting their own listings. You want an independent buyers’ advocate who acts exclusively on your behalf and has only your best interests at heart.
Propertybuyer is Australia’s most awarded buyers’ agency that helps you locate your dream home or investment property. Established over 20 years ago, credited with over 36 Awards for Excellence, and with over 3000 transactions completed, the Propertybuyer team has the experience, credentials and integrity to deliver the best buyers’ advocate service on a city level (for example, Sydney) and a state or territory level (for example, NSW).
Our team of expert local buyers’ advocates provides independent advice and excellent support to help you find and negotiate your ideal property. CEO & Founder Rich Harvey says, “Buyers’ Agent's should have professional support at each step of the buying process to save time searching, understand current market values, and avoid over-spending by making an emotional buying decision.”
Buyers’ Agents provide a lot of value to property buyers. Buyers’ Agents can save you time by helping you find and evaluate the ideal home and negotiate the lowest price. They can also remove emotion and stress from the buying process. Their local expertise will help you understand current market value. They should also have deep connections with local real estate agents to find off-market opportunities, especially in prestige real estate where discretion is the watchword and record prices are set (AUD$71 million in Sydney, for example).
A buyers’ agent is a licenced agent who works solely and exclusively for the buyer and assists in all aspects of the purchase process, from finding and shortlisting properties to evaluating and negotiating prime real estate investments. A Realtor, on the other hand, is someone working for the vendor in selling a property and helps with marketing, advertising, conducting open homes, auctions and private treaty negotiations (with your buyers’ advocate, perhaps).
Look for an independent Buyers’ Agent with a good reputation for integrity, who engenders trust, and has your best interests at heart. You want a buyers’ advocate who has excellent local knowledge, credibility, a strong track record and good relationships with other agents in the real estate market. It’s even better if the buyers’ advocate has at least five years’ experience. Look into your buyers’ advocate to ensure they have good research systems, sound property buying and investment strategies, and are strong negotiators.
Buyers’ Agents usually charge a flat fee or a percentage fee based on the price point of the property you are seeking to purchase. Buyers’ agents charge this fee as a consideration of the time, effort, research, established networks and advice they provide to buyers who want to purchase a suitable property that meets their requirements.
In Australia, the seller does NOT pay the buyers’ agent fee. Buyers’ agent fees are paid for by the purchaser for representing them in the buying process. Buyers’ advocates’ services include assisting buyers with finding, shortlisting, evaluating and negotiating the best price for the target property.
To be classified as a Buyers’ Agent, you must hold the relevant real estate licence within the state you are purchasing. You cannot represent yourself as a buyers’ agent without the required licence and professional qualifications. A reputable buyers’ advocate would also have many years’ experience, deep local networks and a good track record. Outsourcing the buying process to a professional buyers’ agent can save buyers significant time, money and stress.
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